Williams Companies (NYSE:WMB) Rating Lowered to Sell at Wall Street Zen

Key Points

• Williams Companies has been downgraded by Wall Street Zen from a "hold" rating to a "sell" rating, amidst mixed assessments from other analysts who continue to maintain a general "Hold" rating with a consensus price target of $62.00.
• The company reported Q2 earnings of $0.46 per share, falling short of analyst expectations of $0.49, and revenue of $2.78 billion, which also did not meet the consensus estimate of $2.90 billion.
• Insider trading reports indicate that SVP Terrance Lane Wilson sold 2,000 shares at around $59.68, reducing his ownership of the stock by 0.63%.

Williams Companies (NYSE:WMB - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

WMB has been the subject of a number of other research reports. TD Cowen began coverage on shares of Williams Companies in a report on Monday, July 7th. They set a "buy" rating and a $67.00 price target for the company. Wells Fargo & Company raised their price target on shares of Williams Companies from $67.00 to $70.00 and gave the stock an "overweight" rating in a report on Friday. Royal Bank Of Canada restated an "outperform" rating and set a $63.00 price target on shares of Williams Companies in a report on Tuesday, July 15th. Scotiabank raised their price target on shares of Williams Companies from $59.00 to $60.00 and gave the stock a "sector perform" rating in a report on Tuesday, July 15th. Finally, Wolfe Research upgraded shares of Williams Companies from an "underperform" rating to a "peer perform" rating in a report on Friday, June 13th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have issued a buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $62.00.

Williams Companies Price Performance

WMB remained flat at $57.89 during trading on Friday. 5,384,629 shares of the company's stock were exchanged, compared to its average volume of 6,923,967. The company has a current ratio of 0.54, a quick ratio of 0.48 and a debt-to-equity ratio of 1.73. The stock has a 50-day simple moving average of $59.32 and a two-hundred day simple moving average of $58.26. Williams Companies has a twelve month low of $42.79 and a twelve month high of $63.45. The company has a market capitalization of $70.59 billion, a P/E ratio of 29.09, a price-to-earnings-growth ratio of 1.92 and a beta of 0.66.

Williams Companies (NYSE:WMB - Get Free Report) last released its earnings results on Monday, August 4th. The pipeline company reported $0.46 earnings per share for the quarter, missing analysts' consensus estimates of $0.49 by ($0.03). Williams Companies had a return on equity of 16.23% and a net margin of 21.63%. The business had revenue of $2.78 billion during the quarter, compared to analysts' expectations of $2.90 billion. During the same period last year, the business earned $0.43 earnings per share. The company's revenue for the quarter was up 19.0% compared to the same quarter last year. As a group, equities analysts forecast that Williams Companies will post 2.08 EPS for the current fiscal year.

Insider Activity

In other news, SVP Terrance Lane Wilson sold 2,000 shares of Williams Companies stock in a transaction on Friday, August 1st. The shares were sold at an average price of $59.68, for a total transaction of $119,360.00. Following the completion of the sale, the senior vice president directly owned 313,645 shares of the company's stock, valued at approximately $18,718,333.60. The trade was a 0.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On Williams Companies

A number of institutional investors and hedge funds have recently bought and sold shares of WMB. Brighton Jones LLC lifted its position in Williams Companies by 40.9% in the fourth quarter. Brighton Jones LLC now owns 13,680 shares of the pipeline company's stock valued at $740,000 after acquiring an additional 3,969 shares during the last quarter. FMR LLC raised its holdings in Williams Companies by 18.4% during the fourth quarter. FMR LLC now owns 3,138,814 shares of the pipeline company's stock worth $169,873,000 after purchasing an additional 488,322 shares in the last quarter. Scotia Capital Inc. raised its holdings in Williams Companies by 85.2% during the fourth quarter. Scotia Capital Inc. now owns 40,338 shares of the pipeline company's stock worth $2,183,000 after purchasing an additional 18,555 shares in the last quarter. Legacy Financial Advisors Inc. purchased a new position in Williams Companies during the fourth quarter worth about $218,000. Finally, Heritage Trust Co purchased a new position in Williams Companies during the fourth quarter worth about $532,000. 86.44% of the stock is owned by hedge funds and other institutional investors.

About Williams Companies

The Williams Companies, Inc, together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission & Gulf of Mexico segment comprises natural gas pipelines; Transco, Northwest pipeline, MountainWest, and related natural gas storage facilities; and natural gas gathering and processing, and crude oil production handling and transportation assets in the Gulf Coast region.